Law Society of Ontario (LSO) Paralegal Practice Exam

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Which option best describes Nominal Damages?

Compensation for actual losses incurred
A symbolic amount awarded to recognize a legal right violation
Payment for injuries caused by negligence
Punitive compensation awarded for willful misconduct

The correct answer is: A symbolic amount awarded to recognize a legal right violation

Nominal damages refer to a small, symbolic amount of money awarded to a plaintiff in a lawsuit when a legal right has been violated but where there is no substantial loss or injury to be compensated for. This type of damages serves to recognize that a legal right has been infringed upon, even if the actual financial loss is negligible or nonexistent. When a court grants nominal damages, it acknowledges the validity of the legal claim without the necessity of proving significant harm or loss. This can be particularly important in instances where a plaintiff wants to assert their rights, even if the violation did not result in tangible harm. For instance, if a person's rights are breached but they suffer no financial loss, the court may still award nominal damages to highlight the injustice of the wrongdoing. In contrast, other options describe different types of damages that involve actual loss, compensation for negligence, or punitive elements aimed at deterring wrongdoing rather than simply recognizing a violation of rights.